The number of new company and LLP (limited liability partnership) registrations has risen by almost 5% in the current financial year, reaching 91,578 compared to 87,379 in the same four-month period last year, as reported by the Ministry of Corporate Affairs.
This uptick in new business formations for the fiscal year 2024-25 follows a notable 15% increase in company registrations during 2023-24, compared to 159,000 in 2022-23. This ongoing rise signals a positive shift in the country's business environment, according to a senior official.
By the end of March 2024, India had registered a total of 2,663,016 companies, along with 5,164 foreign companies, reflecting robust foreign direct investment in the burgeoning economy.
Additionally, the Ministry's data indicates a significant rise in the number of DIR-3 KYC forms filed this fiscal year, reaching 1.017 million compared to 798,000 in the same period of 2023-24.
All directors who received their Director Identification Number (DIN) by the end of the fiscal year and whose DIN has been approved must submit the DIR-3 KYC form by September 30 of the following year. Annual filing of DIR-3 KYC is also required for all existing DIN holders.
The total number of submissions on the MCA-21 portal this year has also increased, reaching 2.76 million from 2.37 million last year.
In recent years, the Ministry of Corporate Affairs has aimed to ease compliance requirements and enhance the business environment.
Officials anticipate further growth in new businesses, supported by incentive schemes introduced in the Budget 2024-25 for micro, small, and medium enterprises (MSMEs).
Finance Minister Nirmala Sitharaman unveiled a new scheme providing collateral-free term loans for MSMEs to acquire machinery and equipment, with a guarantee fund offering up to Rs 100 crore.
Additionally, employers will receive up to Rs 3,000 per month for two years for each new employee’s EPFO contributions. This initiative is designed to encourage the creation of 5 million new jobs.
The Finance Minister also announced employment-linked skill development initiatives as part of the Prime Minister’s package. New entrants to the workforce in formal sectors will receive a one-month salary, up to Rs 15,000, through a direct benefit transfer (DBT) in three installments.
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